Received severance but was rehired

[JohnAn2112]

Hey guys,

About 3 weeks ago, the company I worked for had a "workforce reduction" and I was on the cut list. I received a severance check 7 days after my last day which was a blessing since I needed the money. However, the company called me and asked me to come back. I took the offer since I need consistent income. Now, am I obligated to pay back the severance check? I looked over my termination agreement and my new offer letter and I don't see anything that states that I would have to pay it back, but I just want to make sure (but don't really want to bring it up with the company. Don't ask, don't tell, right?)

BTW. this is in California.

Thanks.

 

[Epic Fail]

Ask for a sign up bonus too.

 

[Leros]

I would say you deserve the severance for the time you were unemployed.

 

[Baked]

You have to pay back the severance.

 

[her209]

You were officially terminated by said company therefore you are entitled to the severance check.

 

[jpeyton]

Don't ask, don't tell.

 

[FallenHero]

Originally posted by: Baked
You have to pay back the severance.

unless they don't ask.

 

[JohnAn2112]

I've been reading my termination letter (called Seperation Agreement by the company) and it says when I sign the letter, I would receive my severance check (which I did) and that basically releases any obligation between me and the company. Since they gave me a new offer letter, I would assume that it would mean that any previous contracts are null and we would just go with the new contract from now on, correct?

 

[Fayd]

Originally posted by: JohnAn2112
I've been reading my termination letter (called Seperation Agreement by the company) and it says when I sign the letter, I would receive my severance check (which I did) and that basically releases any obligation between me and the company. Since they gave me a new offer letter, I would assume that it would mean that any previous contracts are null and we would just go with the new contract from now on, correct?

i would guess so.

and i agree with first responder. try to get signing bonus.

 

[Mday]

You do not have to pay back the severance. But, they may not hire you back if you don't.

Paying back the severance would be a tax and $$ problem for you. The amount of the check should have had taxes deducted from it. The company may be asking for the full severance amount, which means you would pay them what the was withheld as well. In other words, you could be paying back MORE than what you actually got in the first place. And you need to keep this in mind for your '08 taxes.

Paying back the severance is also a way for the company to screw you over. If you pay it back, they may be able to fire you right away from your "new job" which means you may not be eligible for severance in that new job. Also, being rehired is also a means for some companies to clean house, and reduce your benefits.

Read your employment contract carefully. And prepare to sue. Know your rights.

I am not a lawyer or accountant.

 

[Baked]

Originally posted by: FallenHero

Originally posted by: Baked
You have to pay back the severance.

unless they don't ask.

Accounting never forgets. Believe, they'll want their money back.

 

[JohnAn2112]

I have the new offer letter in front of me and they don't mention anything about my previous job there or my severance. I'll just keep quiet on this and go with what my current offer says. It's almost the same as the one I had when I first came to the company. No mention of any previous employment.

 

[her209]

Originally posted by: JohnAn2112
I've been reading my termination letter (called Seperation Agreement by the company) and it says when I sign the letter, I would receive my severance check (which I did) and that basically releases any obligation between me and the company. Since they gave me a new offer letter, I would assume that it would mean that any previous contracts are null and we would just go with the new contract from now on, correct?

Tell them to go pound sand when they ask for the severance pay back.

 

[AccruedExpenditure]

They won't ask for severance back.

 

[JohnAn2112]

Originally posted by: Baked

Originally posted by: FallenHero

Originally posted by: Baked
You have to pay back the severance.

unless they don't ask.

Accounting never forgets. Believe, they'll want their money back.

On what ground though? All the documents that I have signed do not mention anything about rehires and getting the severance back. Actually, as I continue to read the separation notice, they actually call the severance a separation benefit. Since when do you pay back a benefit?

 

[FallenHero]

Originally posted by: Baked

Originally posted by: FallenHero

Originally posted by: Baked
You have to pay back the severance.

unless they don't ask.

Accounting never forgets. Believe, they'll want their money back.

They may not forget, but they certainly can get overwhelmed, or documents mishandled/misfiled/misplaced/destroyed.

My last job was evidence of that. I burned all my vacation and sick time prior to quitting, yet they still paid me for those days in my last check as if I had no used them. Bank error in my favor. 2 years later, no questions.

 

[alkemyst]

Originally posted by: Baked
You have to pay back the severance.

not ever in my experience. This happens quite a bit as well.

Sometimes the company would rather cut a whole group so they can't be identified as playing favorites/etc. Then they just rehire those that go through the effort to reapply or sometimes just contact them direct.

 

[Capt Caveman]

No b/c they are two independent events.

 

[darkxshade]

The check is yours. You got layed off, they gave you severance. Now that you're re-hired, think of yourself as a completely new employee.

 

[Capt Caveman]

Originally posted by: Baked

Originally posted by: FallenHero

Originally posted by: Baked
You have to pay back the severance.

unless they don't ask.

Accounting never forgets. Believe, they'll want their money back.

Accounting doesn't care. It would be a HR/Legal issue.

 

[DomS]

DO NOT give it back. You were 'severed'. They reattached you.

 

[mzinz165]

Exact same situation for me.

Two months ago I was laid-off with several others. A week ago I got an offer letter in the mail from the same company, PLUS a raise.

They literally paid for my entire vacation (severence), and now I come back making more money.

Sometimes things just work out.

 

[SociallyChallenged]

I know in some cases they won't ask for it back. For example, there was a big fiasco at UC Berkley because the police chief (or something similar) was retiring, got millions of dollars as severance, got rehired the next week, and kept the severance money.

 

[SirStev0]

Originally posted by: Leros
I would say you deserve the severance for the time you were unemployed.

 

[KeithTalent]

I would ask my employer, but I'm crazy like that.

KT